Fidelity has for a long time charged no concessions on Treasuries bought at original auction, but this month they eliminated concessions on secondary market Treasuries trades as well.
Of course, for the secondary market stuff they can (and will) be making money on the spread and markups/markdowns, I imagine. Whether they will increase markups/markdowns to make up for eliminated concession, who knows. Apply the level of cynicism you deem proper :)
-- Rich Carreiro snipped-for-privacy@rlcarr.com
Do people consider treasuries a good buy now? At this time, it looks like one can do better with an online savings account.
Anoop
The bid/offer spread on Treasuries is tiny, even on oddlots. Fidelity is using this as a loss leader, just like any other business. As for there being value in Treasuries at this level, that is in the eye of the individual investor. What yield are you willing to accept for a credit risk-free investment in this environment?
I assume there is no risk with an FDIC insured online savings account, although if one has more money than can be FDIC-insured at a single bank, then one would have to open multiple accounts with different banks.
What are the risks with FDRXX/FCFXX?
Anoop
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